Calgary Homeowners: Buy or Sell First? A Strategy Guide

For many Calgary homeowners, deciding to move raises a key question: Should you secure your next home before selling your current one, or vice versa? This dilemma doesn't have a one-size-fits-all answer; it depends on your individual circumstances. Let's dive into what you need to consider for both scenarios, especially with the unique dynamics at play in Calgary and the surrounding areas.

Buying Before Selling: The Calgary Perspective

The thought of landing your dream home in Calgary before selling your existing property is tempting indeed. Imagine not having to worry about where you’ll live next or the need for temporary accommodations. However, before you leap, consider these angles:

Pros:

• A Smooth Transition: Buying your next home first means you won’t find yourself in limbo. You’ll bypass the inconvenience of temporary housing, juggling storage solutions, or living out of boxes.
• Move at Your Own Pace: Owning your next home lets you move on your terms and timeline, reducing stress and chaos.

Cons:

• Financial Pressure: Carrying two mortgages, at least for a while, can strain your finances unless you're in a position to buy outright. The costs add up quickly, potentially prompting you to secure additional financing, such as a bridge loan.
• The Rush to Sell: With the financial weight of two properties, there’s a strong incentive to sell your current property quickly, sometimes at a compromise on your desired selling price.

Selling Before Buying: Navigating Calgary's Market

Opting to sell your Calgary home before buying another offers financial clarity but also presents its own challenges.

Pros:

• Financial Freedom: Selling first frees you from the worry of dual mortgages and lets you know exactly how much money you have for your next purchase, simplifying your budgeting and planning.
• Stronger Position as a Buyer: With the proceeds from your sale already in hand, you can make more compelling offers. In Calgary’s competitive market, being able to proceed without the sale condition can make you more attractive to sellers.

Cons:

• The Search for Temporary Housing: Should you sell your home before securing a new one, you’ll need to find somewhere to stay, whether that’s a rental, with family, or another temporary arrangement, all of which come with their own stresses.
• The Pressure to Purchase: Once your home is sold, the clock is ticking to find your next property, potentially pushing you towards a hurried decision.

So, What's the Best Move in Calgary?

Several factors play into this decision:

• Understanding Market Conditions: Know whether you’re in a buyer's or seller's market. Calgary's real estate landscape can fluctuate; sometimes homes fly off the market, and other times, they sit a bit longer. This greatly impacts your strategy.
• Evaluating Your Financial Situation: Can you afford the potential of double mortgage payments, or would selling first alleviate financial concerns? If your budget is tight, selling first could spare you significant stress.
• Assessing Your Risk Tolerance: How comfortable are you with the uncertainty of carrying two mortgages or the rush to find a new home? Your comfort level with these scenarios will influence your decision.

If neither path feels quite right, Calgary residents might consider bridge loans to cover the gap between purchase and sale, or make a contingent offer contingent on the sale of their current home. However, keep in mind that contingent offers can be less attractive to sellers in a competitive market.

Ultimately, deciding whether to buy or sell first in Calgary and the surrounding areas is a personal choice that should align with your financial situation, the current real estate climate, and your individual needs and goals. A thoughtful assessment of your circumstances and preferences will help you make a decision that makes your transition as smooth as possible.